Expert advice on navigating complex tax scenarios in 2026: Learn how to set off non-speculative business losses from derivatives against equity gains, the tax implications of gifting mutual funds to adult vs. minor daughters, and how to maximize gratuity exemptions up to ₹20 lakh under the new tax regime.
Tax Q&A: Can You Set Off F&O Losses Against Equity Gains and How to Save Tax on ₹25 Lakh Gratuity?
l I want to gift some mutual fund units to my two daughters. Will gifting reduce my tax liability when I sell the units?—Arun Kumar
Gifting mutual fund units to daughters is not taxable at the time of transfer. However, the tax impact arises at the time of sale of the gifted units. If they are minors, capital gains from the sale will be clubbed with the income of the parent and taxed accordingly. If they are adults, the capital gains will be taxable in their hands, though the cost of acquisition and holding period will remain the same as yours. Gifting to adult daughters may result in tax efficiency based on their income levels.
l I had incurred some losses in derivative trading. Can I set it off with gains made in equity in the last two months?—Praveen Katyal
Losses from equity derivative trading are treated as non-speculative business losses under Section 43(5). In the same year, such business losses may be set off against income under any other head except salary, in accordance with Section 71(2A). Accordingly, losses from derivative trading can be set off against gains arising from equity. Losses not fully adjusted in the same year can be carried forward for up to eight assessment years. Such carried forward business losses can be set off only against business income and not against income under any other head.
l I took a home loan but did not take any tax benefit. I want to sell the property. Can I add the interest paid in the cost of acquisition?—S R Pillai
Interest incurred on borrowed capital for the acquisition of a property can be included in the cost of acquisition while computing capital gains. However, only that portion of the interest which has not been claimed as a deduction under Section 24 or any other provision can be added. Since no tax deduction has been claimed by you in respect of the interest paid, the entire eligible interest amount can be added to the cost of acquisition.
l I will get a gratuity of Rs 25 lakh in March after retirement. I file my returns under the new tax regime. Can I get tax exemption on this?—Name withheld
Gratuity is exempted from tax up to the prescribed limits, irrespective of whether you opt for the old or new tax regime. For non-government employees covered under the Payment of Gratuity Act, the exemption is restricted to the least of the actual gratuity received, `20 lakh, or last salary (basic + DA) x number of years of employment* 15/26. Any amount received in excess of the exempt limit will be taxable as salary income.
The writer is partner, Nangia & Company. Send your queries to fepersonalfinance@expressindia.com
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